A framework established by the European Union to regulate hedge funds and private equity firms, ensuring that they operate under supervision to mitigate systemic risk and protect investors.
Risk capital refers to the funds invested in projects with a high level of uncertainty, such as new ventures or expanding businesses, where substantial risk exists but the potential for high returns is present.
Shareholder debt refers to the financial obligations incurred by a company to its shareholders, where interest paid on this debt is tax-deductible. It is commonly used in highly leveraged funding arrangements typically associated with private equity firms.
Taper Relief was a tax relief mechanism used in the U.K. to reduce the amount of Capital Gains Tax (CGT) payable on the disposal of assets, provided these assets were held for a certain period. It was replaced by Entrepreneurs' Relief in 2008.
